Gold and silver markets witnessed an exceptionally volatile and eventful week between January 19 and January 24, marked by sharp rallies, record levels and subsequent bouts of profit-taking as global investors sought safety amid heightened macroeconomic and geopolitical uncertainty. Both metals ended the week significantly higher compared with the previous week, though daily price movements remained uneven, especially in silver.
Gold prices strengthened steadily through the week as safe-haven demand intensified. Global investors increasingly shifted allocations towards bullion amid concerns over geopolitical tensions, uncertainty around global growth prospects and expectations of prolonged accommodative monetary conditions in major economies. A softer US dollar and declining real bond yields added further support, making gold more attractive relative to interest-bearing assets.
Prices moved higher in the early part of the week and extended gains mid-week, touching fresh record or near-record levels in international markets. Although some profit-booking was visible towards the end of the week, gold managed to hold on to most of its gains, reflecting strong underlying demand and sustained investor interest.
Market players believe that precious metals continue to trade in a structurally strong bull market as we move deeper into 2026, with momentum firmly intact despite intermittent corrections and elevated price levels.
"The current phase reflects healthy consolidation rather than exhaustion, with long-term fundamentals continuing to dominate short-term volatility," says R Ponmudi, chief executive officer, Enrich Money, a SEBI-registered online trading and wealthtech firm.
His analysis shows that COMEX Gold remains anchored near record territories around $4,950–$4,990 after its recent all-time highs.
"Persistent safe-haven demand, steady central-bank accumulation, and expectations of accommodative global monetary conditions continue to underpin prices. Importantly, downside remains limited as former resistance zones have now turned into reliable demand areas, reinforcing the strength of the broader trend," Ponmudy noted in a review report.
Ponmudi expects that silver to continue outperform decisively as COMEX Silver has surged beyond the $99 mark, registering fresh lifetime highs and highlighting the unique dual nature of the metal — part monetary hedge, part industrial commodity. Accelerating demand from green energy, electric vehicles, AI infrastructure, electronics, and chronic supply deficits are driving a structurally tight market. The relative strength of silver over gold reflects this powerful convergence of investment and industrial demand, his note said.
In India, domestic gold prices broadly mirrored global trends, supported by international cues and a steady rupee. Physical demand also showed signs of improvement, aided by ongoing wedding season buying and heightened retail interest amid rising prices. While higher price levels capped aggressive fresh buying, the overall tone in the domestic market remained firm, with jewellers reporting stable enquiries and investors continuing to view gold as a hedge against uncertainty.
Silver outperformed gold in percentage terms during the week but also displayed far greater volatility. Prices surged sharply in the first half of the week, driven by a combination of safe-haven buying and strong speculative interest. Silver’s dual role as both a precious metal and an industrial commodity amplified price moves, as expectations of long-term demand from green energy, electronics and manufacturing sectors continued to underpin sentiment. At one point during the week, international silver prices scaled historic highs, triggering a wave of momentum-driven buying.
However, the sharp rally also attracted aggressive profit-taking, leading to swift intraday corrections, particularly in the latter part of the week. These pullbacks highlighted silver’s tendency to exaggerate market moves compared with gold. Despite the corrections, silver prices remained substantially higher on a weekly basis, indicating that broader bullish sentiment was still intact. In the Indian market, silver prices followed global cues closely, touching elevated levels before easing slightly as traders locked in gains.
According to Ponmudi, this rally remains fundamentally driven rather than speculative. "Supply constraints — especially acute in silver — sustained central-bank buying, rising industrial consumption, and persistent geopolitical and macro risks form the core pillars of the ongoing super-cycle. Recent volatility has largely stemmed from position adjustments, dollar fluctuations, and tactical profit-booking, without any meaningful deterioration in the underlying drivers. A firm USD/INR continues to provide additional support to domestic bullion prices," he says.
Overall, the week underscored the contrasting characteristics of the two metals. Gold maintained a relatively stable upward trajectory, reaffirming its role as a defensive asset during periods of uncertainty. Silver, while benefiting from the same macro drivers, showed sharper swings due to speculative activity and its higher sensitivity to shifts in risk appetite. For investors, the period reinforced gold’s appeal as a portfolio stabiliser, while silver remained a high-beta play offering higher potential returns along with elevated risk.
As markets moved into the final days of January, participants appeared cautious yet constructive on precious metals. Attention remained focused on upcoming global economic data, central bank signals and geopolitical developments, all of which were expected to continue influencing sentiment. While short-term volatility was likely to persist, the broader environment during the week of January 19 to 24, 2026, remained decisively supportive for both gold and silver, setting a strong tone for the near-term outlook.
"Looking ahead into the remainder of Q1 2026 and beyond, the outlook for precious metals stays decisively bullish," hopes Ponmudi.
He added that tight supply, dual demand engines, and supportive global liquidity conditions favor continued medium-to-long-term upside.
Enrich Money review projects that the near-term pullbacks, driven by overbought conditions or temporary dollar strength, are likely to remain shallow and should attract fresh accumulation. Silver, in particular, retains strong relative-performance potential, while gold continues to serve as the most reliable hedge against macro uncertainty, it said.